It’s been a difficult few months with most hotels in Bangkok reporting
downturns in business, with some reporting 14% drop in revenues from the
There are many factors at play, however price does not appear to be a major
Top of the list is security concerns particularly in the capital. The New
Year bombings; the continued unrest in the South; the recent grenade attack
close to the Rama Gardens hotel and a spate of travel advisories with
government warnings are all hurting tourism.
Forecast for March ‘07 in the capital is more of the same with occupancies
normally hovering above 80%, however forecasters predict little more than
Big losers are the corporate and MICE market sectors. Some companies have
issued bans on all but essential travel to Thailand, with the uncertainty
over the interim government’s failure to curb ongoing security concerns.
A number of high profile events have recently cancelled; one 5 star hotel
recently reported loosing a North American corporate incentive group worth
Bt 11m (US$ 309k), due to current travel advisories.
The financial corporate market is still reeling from the effects of a number
of unclear government fiscal regulations and a series of political U-turns.
Add to this a weakening dollar and the short term looks decidedly unsettled.
The downturn appears not to be limited to the hotel sector. Luxury car maker
Daimler Chrysler reported recent slower sales as potential customers took a
wait and see approach. Krungthai Card (KTC), with its 1.4 million credit
card holders, recently reported a 43% drop in YOY profits.
TAT and THAI are shortly to announce major campaigns at boosting domestic
spending with promotions aimed at families during the long school holidays
and also Songkran, the latter leading to a mass exodus from the metropolis,
during the April bank holiday.
With the low season just round the corner many hoteliers are expecting more
challenges ahead as the industry looks for direction and revenue